Uptrend counter : For eg, Vallianz Holdings (545.SI).
Look at the weekly chart,
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| Vallianz Weekly Chart |
From the chart, you mush be able to tell immediately wheres the support and the reistance levels, always bear this in mind, buy at support and sell at resistance.
What Is Support?
Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.
From the above chart, a good support level is at 9.7, and in TA, always remembe 1 thing, once reistance broken it will turn into a support. Hence you will normally hear such phrase as, resistance turns support and support turns into resistance.
From the above chart, a good support level is at 9.7, and in TA, always remembe 1 thing, once reistance broken it will turn into a support. Hence you will normally hear such phrase as, resistance turns support and support turns into resistance.
What Is Resistance?
Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.
One thing to note, different chartist interpret resistance and support levels differently.
One thing to note, different chartist interpret resistance and support levels differently.
